Best Spread Betting Markets for Beginners?

By mosesbet · Filed Under Spread Betting Comments Off on Best Spread Betting Markets for Beginners? 

Spread Betting Markets for Beginners

So you have taken the plunge and opened a financial spread betting account, you have a good knowledge about how this method of trading works and are ready to jump right in, but what are the best markets to bet on if you are just starting out.

Before we answer that question though, let’s make sure that you are betting with a stake size and a betting bank that you are comfortable with. That is a far more important factor to take into consideration, not just for a novice financial spread bettor but also for anyone who is involved in this form of trading.

If you are using a stake size that is too large you will be under enormous pressure to ensure that a trade goes the way in which you expected. If it doesn’t, you’ll be tempted to exit the trade too early and the result of spread betting in this way, over the long term, is that you will lose money; it really is as simple as that.

Before you start, especially if you are a beginner, it would be advisable to put in place a guaranteed stop loss, this will give you something of a safety net should the trade move against you and when coupled with stake sizes that you are comfortable with it will give ant financial spread bettor a head start in their quest to make consistent profits from financial spread betting.

Which Markets To Avoid

When you have some financial spread betting experience under your belt, the more volatile markets are ones that you will more than likely embrace but there are other options which are far more suited to a financial spread betting beginner. The main ones to avoid in the beginning would have to be the forex markets as well as trading in general when an important announcement is being made. If you need any further persuasion to leave forex for a later date, open up a chart for the GBP/USD for example and take a look at the price movements over the past 24 hours. Movements of 200 or more pips are not at all uncommon and quite often for no apparent reason.

Which Markets To Trade

At the other end of the spectrum. If you were trying to get your feet wet by spread betting on share for instance, which has hardly moved over the past few day, you could very well find yourself getting a little frustrated by the lack of movement and you may be tempted just to get out and look for something more interesting, losing money from the spread in the process.

If push came to shove and you are looking for the best market to trade on when you are just starting out, I would advise that you take a look at trading in an individual share in the FTSE 100. Don’t just choose one willy nilly, carry out a little research, what is happening in the news, is a trend forming which could have an impact on a particular share price? Buy a copy of the financial times to see if you can pick up any nuggets of information there.

When you have come to a decision, the same thing applies with regards to stake sizes, keep them small, set a stop loss and also know exactly what point you will be happy to exit the trade. Keeping it nice and simple like this will ensure that you are still in the game whilst others who jumped in with both feet, not really knowing what they were doing and trading out of their comfort zone, have decided to call it a day.

 

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